The Federal Government has indicated that it may sell Nigeria’s state-owned refineries as part of broader economic reforms aimed at attracting investment, boosting competition, and improving efficiency in the downstream oil sector.
Nigeria’s four refineries — located in Port Harcourt, Warri, and Kaduna — have a combined installed capacity of 445,000 barrels per day (bpd) but have remained largely dormant for decades, despite repeated turnaround maintenance projects that cost the government billions of dollars.
Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, disclosed the plan during an interview with Bloomberg TV anchor Joumanna Bercetche on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) on Tuesday.
The refineries are owned by the Nigerian National Petroleum Company Limited (NNPCL). “It’s one of the options we have to consider — if we find the right technical partner with the right capital,” Verheijen said.
She noted that the plants had been sustained by subsidies over the years. “Now that we’ve removed the subsidies, we’ve also removed distortions in the market,” she added.
According to Verheijen, President Tinubu’s reform agenda seeks to restore efficiency and transparency in the petroleum sector, ensuring it operates strictly on commercial terms.
One of the refineries was reportedly shut down on May 24, 2025, for scheduled 30-day repairs but has remained idle for more than 80 days, with little visible progress under the current NNPCL leadership.
The update follows an earlier announcement by NNPCL that it is seeking technical equity partners capable of managing and operating the Port Harcourt, Warri, and Kaduna refineries to international standards.
“We are looking ahead with optimism to ensure our refineries operate effectively,” NNPCL Chief Executive Officer Bayo Ojulari said in a recent post on X (formerly Twitter).
Verheijen also hinted that the government views a long-anticipated initial public offering (IPO) for NNPCL as a long-term goal. “What’s really important to the shareholders,” she said, “is that we have an NNPC that’s more transparent, more efficient, and truly delivers.”
